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  • FIRST POST
    • Op89
    • By Op89 7th Mar 18, 4:42 PM
    • 8Posts
    • 9Thanks
    Op89
    New build
    • #1
    • 7th Mar 18, 4:42 PM
    New build 7th Mar 18 at 4:42 PM
    Hello

    I am looking at buying a new build home. I have been told the builders want to exchange in 2 months and complete January 2019 or latest Feb 2019.

    I went into my bank today to ask to start the process. They told me that it would have to be two applications because the mortgage offer is valid for only 6 months. They are happy to complete two applications but I might not fit the rules when I come to apply again.

    Has anyone had any experience with this? It seems impossible!!

    thanks
Page 1
    • kingstreet
    • By kingstreet 8th Mar 18, 9:14 AM
    • 33,397 Posts
    • 18,085 Thanks
    kingstreet
    • #2
    • 8th Mar 18, 9:14 AM
    • #2
    • 8th Mar 18, 9:14 AM
    Speak to your solicitor as they may not be prepared to exchange contracts with a mortgage offer which will expire before the build end-date.

    Typically, lenders issue offers with a six month longevity. This is usually nowhere near long enough for newbuild.

    AFAIK the products with the current longest drawdown deadlines are 30/11/18 and 31/12/2018 so you might have to wait to apply until these have ticked over to 31/03/2019 or similar...
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • crystalpinks
    • By crystalpinks 8th Mar 18, 8:21 PM
    • 40 Posts
    • 20 Thanks
    crystalpinks
    • #3
    • 8th Mar 18, 8:21 PM
    • #3
    • 8th Mar 18, 8:21 PM
    This is naughty of the developer, they shouldn't really release plots for actual sale til about 6 months before they'll be ready!
    My mortgage offer is from Halifax, issued 1st Feb and doesn't expire til Dec if that's any help?
    • Op89
    • By Op89 10th Mar 18, 5:08 PM
    • 8 Posts
    • 9 Thanks
    Op89
    • #4
    • 10th Mar 18, 5:08 PM
    • #4
    • 10th Mar 18, 5:08 PM
    Thank you both that is very useful. I decided there is no point paying a non-refundable deposit knowing I will have to make two mortgage applications. And then there is no guarantee what rate I lock in on the offer and whether I am accepted the second time. Because of this I have made the decision not to proceed and I am back looking around.

    Thanks
    • Thrugelmir
    • By Thrugelmir 10th Mar 18, 7:27 PM
    • 58,528 Posts
    • 51,884 Thanks
    Thrugelmir
    • #5
    • 10th Mar 18, 7:27 PM
    • #5
    • 10th Mar 18, 7:27 PM
    This is naughty of the developer, they shouldn't really release plots for actual sale til about 6 months before they'll be ready!
    Originally posted by crystalpinks
    Not everyone requires a mortgage. If there's interest why not sell the plots.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • andyf1980
    • By andyf1980 11th Mar 18, 8:36 PM
    • 718 Posts
    • 567 Thanks
    andyf1980
    • #6
    • 11th Mar 18, 8:36 PM
    • #6
    • 11th Mar 18, 8:36 PM
    Yes, happened to us. We had to make 3 applications. Nightmare.
    • Supersy
    • By Supersy 12th Mar 18, 9:30 AM
    • 60 Posts
    • 16 Thanks
    Supersy
    • #7
    • 12th Mar 18, 9:30 AM
    • #7
    • 12th Mar 18, 9:30 AM
    We went to the launch event for the new development, we were told would be ready August, Now they saying Jan 2019, was Story Homes... Our mortgage offer is with Natwest and will run out in August, We will have to re apply with Natwest again in August, ours is also Help to Buy.... Story have said they will pay for any valuations etc on re application.
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